News

12 August 2014

Microsoft stays committed to ultra-cheap phones.

Microsoft
has just announced the launch of the Nokia 130, an ultra- low cost mobile phone,
priced at 19 euros ($25; £15).

The entry-level
Nokia 130 can play videos and MP3 music files on its 1.8in (4.6cm) screen.However, the new phone lacks a data
connection, meaning it cannot offer any of Microsoft’s internet services, or
take part in Microsoft's wider
"cloud first" strategy.

"This
is a massive market segment, and there are not a lot of players in this segment
for the reason that scale is really important," stated Jo Harlow, head of
Microsoft's phones business.

Ms
Harlow said that Microsoft was targeting the device at youngsters and low wage
earners in emerging markets, and the handsets will be sold with other budget
handsets running the Series 30+ operating system, which Microsoft acquired as
part of its takeover of Nokia's handset division in April.

Ms
Harlow confirmed, however, that the firm had called a halt to releasing further
Asha and Android-powered Nokia X handsets - platforms that have the added
ability of allowing users to install apps from Microsoft and third-party
developers.The phased-out ranges had
previously been marketed as stepping stones to Nokia's more expensive and more
powerful Lumia-branded Windows Phone handsets.

Microsoft's
marketing materials for the new handset
note that a recent study indicated more than 300 million sub-$35 (£21)
contract-free handsets were sold a year.

The
device is being launched initially in China, Egypt, India, Indonesia, Kenya, Nigeria,
Pakistan, the Philippines and Vietnam. No release date for UK yet.